British boards praised but US slated

Britain’s oldest fund manager has lauded UK companies for being a ‘beacon of
light in an otherwise murky global governance picture’.

The high praise came from F&C Investments, which manage funds worth over
?100bn, which also stated that British companies had ‘raised their game’ in so
far as meeting the requirements of the revised Combined
that governs how listed companies run their affairs.

But the US was slated by the group, with accusations that it ignored
shareholder votes and presided over a ‘stratospheric escalation’ in executive
pay, The Telegraph reported.

The fund manager, which launched the UK’s first ethical fund more than 20
years ago, said the introduction of advisory votes on remuneration four years
ago had inhibited many of the ‘fat cat’ pay rows which continue to plague the

F&C’s head of governance, Katrina Litvack said: ‘Our hope is that this
experience will have a positive spill-over effect in other countries –
especially in the US, where there is a dire need for some common sense in the
way pay scales are established.’

Further reading:

FTSE 350 still flunks Combined Code test

Non-execs earn their keep

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